Big crops get bigger, despite prices

by Gerry Plotkin

January 24, 2017 8:45AM CST

Big crops did get bigger, but looking at prices one would never know it. Technically, the market is still positive, but has approached the overbought area. The market is is going to need to continue to feed the bull.

South American crops are getting better. The rains that are needed came and the areas that received excessive amounts have started to dry. The market has concerns that the changes from our new administration might create trade wars.

On the positive side,125mt corn sale was announced for unknown destination. Also, there is talk of fewer corn acres being planted this season. It is cheaper to plant soybeans, and the return is greater. With the lack of any new friendly news, the improved South American crop, and concerns of trade war, it is difficult to be long at these levels.

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